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This article was published on March 9, 2015 at 16:44.
The last change is the March 9, 2015 at 16:49.
The plan Quantitative easing, quantitative easing, starting today, the monetary policy European, will result, for Italy, in purchases of government bonds for a total of 150 billion euro. Of these, 130 billion will come from the Bank of Italy, while the other 20 billion will be put on the table by the ECB. Also included in the transaction will Abs and covered bonds. The amount of purchases, says a statement issued today by the Via Nazionale, will determine by September 2016 an increase of the budget of the Bank of Italy of the order of 30% compared to the end of 2014.
No significant effect on exposure of Via Nazionale
The securities purchased under the program, the statement said the Bank of Italy, “will be recognized at amortized cost less any impairment losses due to impairment.” Therefore, the balance sheet value of the portfolio will not be affected by changes in market prices subsequent purchases. The expansion of the size of the budget “will not change significantly the nature of the risks’ to which the Bank of Italy is exposed. In particular, “market risks may materialize in the event that the securities were to be sold prior to maturity at prices lower than those of the assets.” For this, in the preparation of the annual budget, will be assessed provisions needed to adapt the means to their size and riskiness of the budget.
Profitability supported by enlargement of the budget
As for the effects on the income statement, “the profitability of the Bank of Italy will depend on the maturity structure of investments and by ‘ future path of policy rates. In the early years, the interest margin will increase, as the performance of the securities to be purchased is on average higher than the official rates; profitability will also be supported from the increased size of the budget. “
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